Bitcoin ETF Speculation Fuels Surge in Cryptocurrency Market
Bitcoin’s Price Surges Amid Growing ETF Anticipation
The price of Bitcoin soared to $35,198 on Tuesday, marking a significant increase from its 18-month peak of $34,766.80. This surge is driven by the growing anticipation surrounding the potential approval of a Bitcoin ETF by the U.S. Securities and Exchange Commission (SEC). The speculation has not only boosted Bitcoin’s price but also led to a rise in crypto-related stocks such as Coinbase Global and MicroStrategy in after-hours trade.
Bullish Trend Continues with Rise in Ether’s Value
This bullish trend is further bolstered by a 10% rise in the previous session and an increase in Ether’s value, which reached its highest level since August. Coinglass data shows that significant Bitcoin short-covering in the last 24 hours has also intensified the speculation. Amidst these developments, Bitcoin’s price has doubled this year.
BlackRock at the Center of Anticipation
Investment firm BlackRock is at the center of this anticipation with pending Bitcoin ETF applications. The listing of BlackRock’s iShares ETF on DTCC’s website has further fueled the market’s anticipation. A Bitcoin spot ETF, like the one proposed by BlackRock, would offer investors an indirect route into Bitcoin, circumventing the risks and technical complexities of direct ownership.
Investors Exercise Caution Amid False Reports
However, investors are exercising caution due to a false report on Bitcoin ETF approval last week that incited similar market fluctuations. The SEC denied these reports, stating that the ETF is under review due to technical difficulties. Nonetheless, Geoffrey Kendrick from Standard Chartered suggests there are higher chances of approval as the SEC is unlikely to contest a court ruling against Grayscale Investments’ ETF application.
An ETF Could Attract New Investors and Increase Liquidity
Steen Jakobsen, CIO at Saxo, believes an ETF could attract new investors and increase liquidity in the market. While BlackRock awaits approval for its spot Bitcoin ETF, other asset managers like Fidelity and Invesco have also lodged their applications, adding to the industry-wide anticipation.
This article highlights the surge in Bitcoin’s price fueled by growing anticipation for a Bitcoin ETF. The market’s bullish trend, driven by the rise in Bitcoin’s value and Ether’s increase, has attracted investors and led to a surge in crypto-related stocks. However, caution is advised due to false reports and the SEC’s review process. Approval of a Bitcoin ETF could potentially attract new investors and increase market liquidity.
